The London Stock Exchange Group (LSEG) has revealed a 5% decline in investment banking fees in the Asia Pacific region, excluding Japan, for the first quarter of 2026. The total fees amounted to $5.3b, representing 15% of the global share. CITIC emerged as the top earner in the region, securing $340.6m in fees.
Equity capital markets (ECM) underwriting fees saw a significant rise, reaching $1.3b, marking a 62% increase from the previous year. This surge was the highest first-quarter total since 2023. Conversely, debt capital markets (DCM) fees decreased by 3% to $3.2b, and syndicated lending fees plummeted by 43% to $311m. Advisory fees from completed mergers and acquisitions (M&A) transactions also fell by 47% to $512m.
M&A activity in the region experienced a 6.3% decline year-on-year, totalling $212.5b. However, the number of announced deals increased by 3.4%, driven by mid-market activity. High Technology led the sector with $66b in deals, nearly tripling last year’s figures.
In ECM, the region saw a three-year high of $61.2b, a 40.3% increase year-on-year. China dominated with 61.7% of proceeds. Initial public offerings (IPOs) rose by 51% in proceeds despite a 19% drop in the number of IPOs.
The DCM sector raised $1.2t, a 2.7% decline from last year. China accounted for 79.6% of the proceeds, with government and agencies leading sector activity.
These figures highlight the shifting dynamics in the Asia Pacific investment banking landscape, with significant growth in ECM and challenges in other areas.
